Hong Kong - Environmental TechnologiesHong-Kong-Environmental-Technologies
Overview
Environmental Technologies Market in Hong Kong Unit: USD thousands| 2016 | 2017 | 2018 (estimated) | 2019 (estimated) | |
| Total Market Size | 722,967 | 309,186 | 554,000 | 562,000 |
| Total Local Production | 367,220 | 144,575 | 300,000 | 300,000 |
| Total Exports | 4,893,891 | 5,532,920 | 5,500,000 | 5,550,000 |
| Total Imports | 5,249,638 | 5,697,531 | 5,754,000 | 5,812,000 |
| Imports from the U.S. | 557,422 | 540,794 | 551,000 | 562,000 |
| Exchange Rate: 1 USD | 7.8 | 7.8 | 7.8 | 7.8 |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: Hong Kong Census & Statistics Department & Industry Sources
Total Exports: Hong Kong Census & Statistics Department & Industry Sources
Total Imports: Hong Kong Census & Statistics Department & Industry Sources
Imports from U.S.: Hong Kong Census & Statistics Department & Industry Sources
(Since there is not an agreed upon definition of “environmental technologies”, and because there is considerable overlap regarding environmental features from various types of machinery and products, market statistics for this sector are, at best, rough approximations.[i])
Hong Kong relies heavily on imports to satisfy its environmental needs. Total environmental technology imports in 2017 amounted to approximately US$5.7 billion. United States suppliers are active in the high-end segment, capturing about 9.5 percent of the total import market in 2017.
Hong Kong is also a sourcing agent for environmental products for mainland China, where heavy green tech investments and tightening environmental regulations have emerged as major drivers of the industry regionally, if not globally. In 2017, re-export of environmental technologies to China through Hong Kong amounted to US$4.3 billion; accounting for approximately 65 percent of Hong Kong’s total environmental technologies re-exports.
The Hong Kong Government has been allocating significant resources toward tackling waste treatment, air pollution, and water pollution problems. With vigorous IPR protection, and the proximity to and experience in trading with mainland China, Hong Kong is an ideal entry point for U.S. environmental companies (especially small- and medium-sized firms) interested in the China market.
Sub-Sector Best Prospects
Air:- Ambient air monitoring instruments
- Vehicle emissions particulate reduction devices
- Desulphurization / De-nitrification technologies for vehicles and ships
Water/wastewater:
- Desalination technologies
- Advanced water filtration technologies
- Disinfection technologies
- Analytical instruments
- Incineration technologies
- Biological treatment technologies
- Recycling (plastic, metal and glass) process expertise
- Recycling expertise for waste electronic and electrical equipment (WEEE)
- Instruments / controls used in monitoring energy usage
- Green building and energy efficiency products and technologies
Opportunities
Hong Kong has set a target of achieving new air quality objectives by 2020. To achieve this goal, Hong Kong has set emission reduction targets with neighboring Guangdong Province of China and is adopting cleaner fuels, promoting territory-wide energy saving and efficiency.Hong Kong will gradually replace most of the coal-fired generation units with cleaner energy sources, further encourage the development of renewable energy and implement the “Energy Saving Plan for Hong Kong’s Built Environment 2015-2025+”, a plan to reduce Hong Kong’s energy intensity by 40 per cent in 10 years. To this end, the Hong Kong Government has set aside approximately US$100 million in FY 2018-19 to promote the installation of renewable energy facilitites at government buildings, venues and community facilities. The Government will also enhance tax concessions for capital expenditure incurred by enterprises in procuring eligible energy efficient building installations and renewable energy devices.
The Water Supplies Department is looking into implementing large-scale floating photovoltaic systems on its reservoirs after the successful installations of two pilot projects in 2017, each of 100 kilowatt (kW) capacity. Both systems can generate some 120,000 kWh of electricity per annum.
Hong Kong disposes of more than 10,000 tons of municipal solid waste per day. The per-capita municipal solid waste disposal rate per day was 1.41kg in 2016. Owing to landfill shortages, the Hong Kong Government has been encouraging waste separation at source for domestic and commercial waste, and recovery and recycling for food, electrical and electronic equipment waste (WEEE).
In early 2018, China has introduced new and tighter measures in its import management regime on recyclables, making it harder for Hong Kong to ship its waste there for processing. As a result, Hong Kong Government has launched new subsidy programs under the Recyling Fund to encourage the local recycling industry to process recyclables locally to a standard that meets the latest import requirements of China. In the long run, the Environmental Protection Department will carry out a study on the feasibility of nurturing a local manufacturing industry using recycled materials, and seek more effective and diversified ways to process local recyclables.
Food waste constitutes about 35% (or 3,600 tons per day) of Hong Kong’s total municipal solid waste. To avoid food waste disposal at landfills, Hong Kong plans to treat the city’s collected food waste to produce renewable energy using anaerobic digestion as the core technology. The preliminary proposal is to to develop five to six regional large-scale organic resources recovery centers in phases, with a total recycling capacity of about 1,300 to 1,500 tons per day.
Every year, about 70,000 tons of WEEE are generated locally in Hong Kong. As part of the efforts in introducing the the Producer Responsibility Scheme on WEEE, or WPRS, the Hong Kong Government has developed a WEEE treatment and recycling facility, or WEEE·PARK, to provide local treatment capacity for WEEE. From August 1, 2018, a seller of regulated electrical equipment (REE) must have a removal service plan endorsed by the Environmental Protection Department for selling REE. The removal service ensures the future waste disposal and proper recycling of the REE.
Hong Kong obtains the majority of its fresh water supply from mainland China. To ensure a sustainable water supply, the Water Supplies Department is currently developing new water sources, such as desalinated seawater; reclaimed water and harvested rainwater. Pre-qualification for the "Design, Build and Operate" contract of the first stage of the Tseung Kwan O desalination plant has been completed in early 2018. The plant is anticipated to commission in 2022. The first stage of desalination plant will have a water production capacity of 135 000 cubic metres per day to meet about five per cent of fresh water demand in Hong Kong.
Web Resources
Trade Shows
Eco Expo Asia 2018
Date: October 25-28, 2018
Description: Organized by the HK Trade Development Council, Messe Frankfurt (HK) Ltd. and the Environmental Bureau, Hong Kong Government, Eco Expo Asia is Hong Kong’s only international trading platform and showcase for the latest environmental protection technologies.
Macao International Environmental Cooperation Forum & Exhibition (MIECF)
Date: March 28-30, 2019
Description: MIECF is an international environmental conference and trade fair held in Macao annually. The theme of the event is low carbon living and sustainable urban development in South China. AmCham Macau is a prominent supporter of the show, whose international agent is KoelnMesse.
Website: http://www.macaomiecf.com/
Trade Associations
Environmental Contractors Management Association
Website: www.ecma.org.hk
Description: Membership is mostly comprised of waste management and janitorial service companies.
Green Council
Website: www.greencouncil.org
Description: The Green Council is a non-profit environmental organization promoting environmental protection.
Hong Kong Environmental Industry Association
Website: www.hkenvia.org/en/
Description: The Hong Kong Environmental Industry Association promotes communication and collaboration among environment-related businesses.
Hong Kong Waste Management Association
Website: www.hongkongwma.org.hk
Description: The Hong Kong Waste Management Association’s members consist of organizations or individuals who advise the Hong Kong Government on the city’s waste management policies.
For more information about this industry sector, please contact:
Ms. Olevia Yim, Sr. Commercial Specialist
U.S. Commercial Service Hong Kong
Tel: (852) 2521-1467
Fax: (852) 2845-9800
Email: olevia.yim@trade.gov
[i] Environmental technologies for this profile refers to the instruments and apparatus under HS codes: 841583 – air conditioning machines not incorporating a refrigerating unit; 841780 – industrial furnaces including incinerators; 842129 – filtering or purifying machinery and apparatus for liquids; 8479 – machinery for public works; 8543 – electrical machines and apparatus, having individual functions; 870911 – Electrical vehicles; 871190 – Motorcycles fitted with an auxiliary motor, other than those fitted with reciprocating internal combustion piston engine; 9026 – instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases; 9027 – instruments and apparatus for physical or chemical analysis; 9032 – automatic regulating or controlling instruments and apparatus.